A huge soybean purchase by China caused oilseed futures to rise on Wednesday.
Winnipeg canola futures followed soybeans higher, but the stronger loonie limited gains.
The Chinese booked 780,000 tonnes of soybeans, the largest one-day sale since June 2008.
Worries about dryness in Argentina continued to underpin oilseed and corn markets.
Corn was also supported by news that China’s Banking Regulatory Commission called on commercial banks to offer special support to the agriculture sector to cope with shortages of corn, cotton and sugar, among other crops.
That was the first time there has been official notice that corn is in short supply in China.
Worries about conflict between North and South Korea faded.
In Winnipeg, the January canola contract rose $1.90 to $536.60 per tonne on 6,928 trades.
The March contract rose $1.30 to $541.800 on 4,301 trades.
The November 2011 contract rose $2 to $498.
The previous day’s best basis narrowed to $24.13 under the January contract.
The January contract 14 day Relative Strength Index was 52. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
December barley futures were unchanged at $180 per tonne. March was unchanged at $185.
Chicago January soybeans rose 16 cents to $12.55 US per bushel. March rose 16.5 cents to $12.6275.
December corn rose 10.25 cents to $5.3875 per bu.
December oats rose 0.75 cents to $3.4825 per bu. March oats rose 0.5 cents to $3.605.
In New York, crude oil for January delivery rose $2.61 to $83.86 US per barrel. Support came from a report that showed U.S. crude oil stocks last week rose less than had been thought.
The Canadian dollar at noon was 98.93 cents US, up from 97.61 cents the previous trading day. The U.S. dollar at noon was $1.0108.
The loonie was supported by news that U.S. jobless benefits dropped to the lowest level in more than two years last week. Support also came from other reports showing U.S. consumers in a more upbeat frame of mind. This indicates the U.S. economy is starting to rebound.
The TSX composite index rose 108.24 points to close at 12,901.99. The S&P 500 rose 17.62 points to close at 1,198.35.
Mary MacArthur, the Western Producer’s Camrose bureau reporter, is in India gathering stories. See her blog about her travels at www.producer.com.
